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| ![]() Investing in China No Easy Task - Literally19 January 2011. While companies may dream of sales to 1.3 bn Chinese, getting start-up money into China is hard. Foreign corps can't convert a single dollar into renminbi [RMB] without prior approval from local branch of Commerce Ministry.
By: EconomyWatch most of the attention will be focused -- in our view, wrongly -- on the dollar / yuan exchange rate, as well as more important matters like the global availability of high-tech vital rare earth metals, of which China controls more than 95% of the world's export trade -- a figure likely to remain more of less constant for the next five to ten years at least. Underlying the currency concern, of course, is the issue of JOBS -- which the US has failed to produce, despite a so-called / self-styled / alleged "recovery", but which are, at least for the moment, more than plentiful in China at ALL income levels. Given this, it's not very likely President Obama or most other corporate / government officials with whom Hu is likely to meet will bring up what might be called "the other side" of the ever-growing and more complex US / China economic relationship: the difficulty US and other investors have in bringing money INTO China, where, of course, they create even more jobs. So in our ever-contrarian spirit here at EconomyWatch, Full article http://www.economywatch.com/ # # # EconomyWatch.com is the world's largest global, independent, economics community. Every month we serve over 750k users, who read and discuss economics, investing and finance topics. End
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